Brazil Swap Rates Surge on Tombini Inflation Comment; Real Drops

Brazilian swap rates climbed to a two-year high after central bank President Alexandre Tombini said policy makers must be “especially vigilant” on inflation.

Swap rates on contracts maturing in January 2016 increased 15 basis points, or 0.15 percentage point, to 11.54 percent at 10:14 a.m. in Sao Paulo on speculation Brazil will increase its target lending rate to 10 percent this month. The swap rates reached the highest level on a closing basis since September 2011. The real depreciated 0.6 percent to 2.2611 per U.S. dollar, the weakest in almost two months.